Tuesday’s House of Representatives vote for a short-term increase to the national debt limit. This would allow the federal government, which is currently in default of unprecedented defaults, to continue to pay its bills until December.
The country’s borrowing ceiling was increased by US$480 billion and passed the Senate in a partisan vote last week. It was approved quickly by the House of Representatives so that President Joe Biden could sign it into legislation this week. Finance Minister Janet Yellen has warned that measures to avoid the country’s debt default will be exhausted on Monday, and from then on, the department will soon be unable to fully fulfill the government’s fiscal obligations.
Global financial markets are dependent on US government debt security and will suffer huge consequences from default. It will also question the government’s regular payments for social security beneficiaries, disabled veterans, active military personnel, and other benefits.
The legislation’s temporary relief is not permanent. Congress will have to reconsider the issue in December. In that month, legislators will work to finish the federal spending bill to avoid a devastating government shutdown. The year-end backlog presented risks for both sides and could have a negative impact on Biden’s first year of office.
“I’m happy that this at most allows us to prevent an entirely self-controlled, completely preventable economic catastrophe when making long-term planning,” stated Jim McGovern, a Massachusetts Representative.
Republicans stated that the next debate on debt limits will be difficult and they warned Democrats not to rely on their support.
Republican Rep. Tom Cole said that the Republicans would not support raising debt limits and helping pave the road for a great welfare system unless Democrats gave up their dream about a big government and socialist America. Okla.
On Tuesday, the House of Representatives voted on the Senate bill. The measure was passed with 219 to 206 votes.
Short-term increases were passed after Senate Republican Leader Mitch McConnell (R-Ky.), agreed to help. This helped ease the current debt ceiling impasse. He insisted that he wouldn’t do it again.
McConnell wrote to Biden Friday stating that Democrats must use the same procedures to pass Biden’s huge social spending and environmental programs, in order to deal with the next increase of the debt limit. .
The agreement allows legislation to be passed the Senate with 51 instead of the required 60 votes. The Senate split 50-50, with Vice President Kamala Harris giving the Democrats a majority through her tiebreaker.